Question: Is counseling required to get a Reverse Mortgage Loan?
Answer: Yes, counseling is mandatory for anyone getting a reverse mortgage loan.
Question: Who does the Reverse Mortgage Counseling service?
Answer: Counseling can only be performed by a HUD licensed counselor (agency). They are available to give homeowners an unbiased education about reverse mortgages.
Question: Where does the Reverse Mortgage Counseling service?
Answer: Reverse mortgage loan counseling can be done at the convenience of the homeowner. They can do it over the phone with a national agency or if they feel more comfortable they can go into their local Utah agency to talk to someone in person.
Question: When must the counseling be done?
Answer: Prior to the application & prior to the appraisal being ordered or any fees being paid, counseling must be complete and the certificate of completion from the counseling service must be given to your lender.
Question: Who has to go to counseling for a Reverse Mortgage Loan?
Answer: Any one getting a reverse mortgage loan. If there is a husband and wife, then BOTH the husband and wife must go together AND it is strongly suggested to take one of your children or a family member with you to the counseling class.
Question: What do I get for going to counseling for a reverse mortgage loan?
Answer: Upon completion of the counseling class, you will be given a certificate of completion of counseling from the class (or mailed to you if done over the phone).
Once counseling is completed, the counselor will mail a HECM Counseling Certificate for the completion of the application.
Question: Is there a cost to go to counseling for a Reverse Mortgage Loan?
Answer: The general cost of counseling is about $125. There are exceptions the rule that if a senior or a couple has an extenuating circumstance and they do not have the financial means to pay for the counseling service, some of the national services that perform the services over the phone will waive the cost.
For a list of Counselors.
Disclaimer: “These materials are not from HUD or FHA and were not approved by HUD or a government agency.” (ML 2014-10).